Benefits in kind: what to tell us when your employee leaves (or at any time)

If you give your employee anything of value beyond their salary, it may count as a benefit in kind. HMRC taxes these just like pay, and when your employee leaves, any benefits must be accounted for on their final payroll or reported separately. If we don't know about them, they don't get declared, and the liability sits with you as the employer.

You don't need to work out whether something is taxable or what it's worth. That's our job. Just tell us what you provide and we'll handle the rest.

Common benefits in domestic employment

Tell us if you provide any of these:

  • Accommodation, whether live-in or a separate property
  • A car for personal use, or fuel for personal journeys
  • Private medical or dental insurance
  • Gym or club memberships
  • A mobile phone contract in your name used by your employee (more than one phone, or a contract in their name that you pay, is usually taxable)
  • Paying bills or expenses on their behalf, such as their travel to and from work, their phone bill, or their professional fees
  • Loans or salary advances over £10,000, or any loan that isn't being repaid
  • Meals beyond everyday shared household food
  • Vouchers or gift cards of any value
  • School fees or childcare costs paid for their children
  • Cash gifts or regular bonuses paid outside payroll
  • Anything else of value provided regularly that isn't in their payslip

Things that are usually fine and don't need declaring

  • One mobile phone on a contract in your name
  • Everyday meals shared as part of the household
  • Occasional small gifts under £50 (birthday flowers, a Christmas present), as long as they're not cash, not regular, and not a reward for work
  • Training or courses related to their job
  • DBS checks and similar employment costs you pay for

Not sure? Just ask.

The line between "generous employer" and "taxable benefit" is not always obvious, and getting it wrong is cheaper to fix before the final payroll than after. If anything on this page rings a bell, or you provide something not listed, get in touch and we'll tell you whether it needs declaring. There's no charge for asking.